**Econometrics**as defined by Michael Brennan (Preface to Econometrics) is the application of modern statistical methods to economic theory that has been formulated in mathematical terms. It is a quantitative measurement of economic relationships, thus it is sometimes referred to as mathematical economics. Econometrics differs somehow with mathematical economics in that its mathematical formulations are designed with a view to statistical measurement and testing.

**Statistics**is the science that deals with the collection, tabulation and systematic classification of quantitative data, especially with respect to frequency distribution and as a basis for inference and induction respecting probable future trends (Webster's dictionary). Statistics is an important aspect of econometrics.

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